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CREDIT UPDATE

ITraxx has closed -1/-7 tighter, finishing the week unch/-2 - Main's moves in line with €IG cash that is ~unch WTD. €IG curves seem to have had a low vol session (for a change) as earnings quietened down. PBB's lines among the worst performers on mids - see our note from yesterday & RE curve moving wider as rates set new YTD highs (€ belly +3 today & +15 on the week). Eco calendar picks up again next week with US Jan CPI & Jan Nominal Retail Sales but its UK that has the data deluge which will include Jan CPI, Q4 Labour market data, Q4 GDP & Jan Real Retail sales. Supply expectations are for a slowdown at $30b for $IG & ~€21b in €IG/HY.

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